Exam 7: Decision Making

Refer to the scenario below to answer the following questions. Decision-Making Conditions: Keep on Truckin' (Scenario) Fiona Lui is general manager of Westcoast Trucks, a medium-sized hauling service located in Vancouver, B.C. She is responsible for scheduling trucks, initiating new routes, and staffing both existing and new routes. She is currently struggling to find more information about the profitability of existing and future truck routes. -Fiona knows that she is operating in an uncertain environment, but she is an optimist and will most likely follow a __________ strategy.

Refer to the scenario below to answer the following questions. Decision-making Biases (Scenario) Frank is president of Mega Manufacturing, a Canadian company that makes automobile parts. Sales and profits are down sharply this quarter, and Frank needs to analyze the series of events that have led to the poor performance. Frank begins by reviewing his recent interactions with Mike, the vice-president of sales. -Unfortunately, Frank learned yesterday that the Japanese car maker decided to award the contract to a competing auto parts company. When Frank asked Mike why they lost the sale, Mike blamed it on the high Canadian dollar and the rise in cheap offshore auto parts suppliers. Mike is demonstrating which of the following?

Linear thinking style ignores external data and facts and relies directly on the decision maker's internal information processing.

Max is planning on going away to college next year and is currently trying to figure out which colleges he should apply to. He would like to major in English Literature at an accredited liberal arts college but is also looking for a university that offers financial aid and student housing. In terms of the decision-making process, these represent Max's ________.

Arthur authorizes the expenditure of an additional $100,000 for the production of a new product despite mounting concerns that it will be unprofitable. The cost of the new product has already increased far beyond the initial plans and projections. Arthur's continuing support for this project illustrates the phenomenon of __________.

describe and discuss the eight steps in the decision-making process. Give a simple example of a decision to illustrate your answer.

When a manager finds a disparity between their current situation and a desired situation, they are at which step of the decision-making process?

If an individual knows the price of three similar cars at different dealerships, he or she is operating under what type of decision-making condition?

A __________ is an explicit statement that tells a manager what he or she can or cannot do.

Which of the following must be present in order to initiate the decision-making process?

Refer to the scenario below to answer the following questions. The Loaned Car (Scenario) Colleen is a student, and her older brother has loaned her an old car. The car is in need of several repairs before she will feel comfortable driving it. -Colleen's brother feels that the car is worth repairing because he has owned several cars made by the same manufacturer, and he has driven this particular car for several years. He also points out that he has invested hundreds of dollars in maintenance and repairs over the years, so it is obviously worth investing in new repairs to keep it running. Colleen's brother appears to be basing his decision on __________ but may also be making an error known as __________.

Refer to the scenario below to answer the following questions. Management Decisions : Declining Income (Scenario) Net income has fallen for the second consecutive quarter, and Amanda is understandably worried. She knows there will be a lot of questions for her at the board of directors meeting Wednesday, and she will be expected to reveal her plan to avoid any third-quarter losses. Amanda begins to analyze the company's financial reports to try to determine the cause of the loss. After much consideration, it appears that expenses have risen dramatically over the last few months. Amanda wonders why. She decides a meeting of the department heads is in order first thing tomorrow morning. At the meeting, Amanda would like to generate several possible solutions to the increased expenses. She wonders how to effectively explore all the options. Next morning, the first option presented at the meeting is to downsize the research and development department, since it is not essential to current operations. Several managers believe the plan will help stem the losses and immediately move to approve it. However, Amanda suggests that they need to look further at the issue and explore other potential solutions. Several suggestions are made, many of which appear to be viable. Amanda wonders what to do next. -What is the first step in the decision-making process facing Amanda?

The type of decision-making in which the solution is considered "good enough" is known as which of the following?

Nonprogrammed decisions are typically made under a condition of ______.

The strap on Brad's backpack broke as he lifted it. On the way to class, he stopped at the first store that carries backpacks and although it was not exactly what he wanted, he purchased a new one from the front counter because it would do the job. Brad has made a(n) __________ decision.

Escalation of commitment refers to ________.

Intuitive decision making is based on values and past experiences.

explain in detail the five habits of highly reliable organizations. Give examples where possible to illustrate your answers.

Whenever possible, managers at ABC Company try to promote employees from within the organization before recruiting from external sources. This is an example of a __________.

__________ occurs when decision makers think they know more than they do or hold unrealistically positive views of themselves and their performance.